EUR/JPY jumps to highest in two weeks above 137.00

Japanese yen drops across the board, even as markets remain cautious.
Euro modestly higher following French presidential elections.
EUR/JPY heads for highest daily close since February 2018.

Matías Salord FXStreet

The EUR/JPY broke to the upside after trading in a range for more than a week. The cross broke 135.50 and jumped to 137.13, reaching the highest level since March 29. It then pulled back finding support above 136.50.

Yen under pressure

The rally of USD/JPY boosted the EUR/JPY. The Japanese yen remains under pressure as US yields continue to rise. The US 10-year and the 30-year hit fresh cycle highs earlier on Monday at 2.78% and 2.80% respectively.

At the same time, the euro rose modestly following the French election. A runoff between Macron and Le Pen will be held on April 27. If polls start showing Le Pen ahead, some negative euro pressure seems likely.

The EUR/JPY is again near the 2022 top and if it ends the day around current levels it will post the highest daily close since February 2018. If the euro recovers and holds above 137.00, a test of the 137.55 highs seems likely. On the negative front, a decline back under 135.30 would alleviate the pressure. A daily close below 134.50 should clear the way for more losses.

EUR/JPY daily chart

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold slides below $4,100 as Fed hike bets exert pressure ahead of US CPI

Gold extends its intraday descent and slides below the $4,100 mark, reversing a major part of the previous day's strong gains to the $4,150 resistance. Firming US Federal Reserve rate-hike expectations turn out to be a key factor driving flows away from the non-yielding bullion. Meanwhile, the US Dollar struggles to lure buyers amid mixed signals regarding the state of diplomatic talks between the US and Iran. This could offer some support to the commodity as traders seem hesitant ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

US CPI data set to ease in October as markets reassess Fed rate hike expectations

The US Bureau of Labor Statistics will publish the October Consumer Price Index data on Tuesday, a release that could influence the US Dollar valuation as investors reassess the Federal Reserve’s interest-rate outlook. The report won’t include 12-month percentage changes for most CPI series in this release, due to missing October 2025 monthly data because of the lack of collection during the government shutdown from October 1, 2025, to November 12, 2025.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.